Exchange rate and sellers' stance sustain cotton quotations

Cotton prices in lint remain relatively stable as the year draws to a close, with slight fluctuations and values close to the export parity. The scenario reflects exchange rate factors, commercial strategies of the agents, and the proximity of the recess, which tends to slow down business. According to analyses by Cepea, the support of the quotations is mainly linked to the appreciation of the dollar against the real, which maintains the competitiveness of the Brazilian product in the external market. Added to this is the firm stance of sellers, who have limited price concessions, while buyers show punctual flexibility for lots that meet the desired specifications. In moments of downward adjustment, the movement was influenced by the need of some sellers to generate cash in the short term and by pressure from part of the demand. Even so, these fluctuations have been moderate, keeping the market at a stable level throughout the period. In general, attention remains focused on the ...